Press release
Europe Global Distribution System [GDS] Market Sales Volume from 2022-2031
Global Distribution System (GDS) is a computer-based network that connects reservation inventory. GDS is commonly used in the tourism industry, primarily by airlines, hotels, and car rental companies. The system allows service providers such as travel agencies and OTAs to sell tickets for the same flight, hotel, or car rental. An advanced global distribution management system is a massive database that stores and updates large amounts of data about inventory and hotel rates for travel agents and websites.View Our Report @ https://www.transparencymarketresearch.com/global-distribution-system-market.html
GDS acts as an intermediary for a travel agent and a hotel's (or airline's) online reservation system. More than 600,000 travel agents use GDS to locate and book hotel reservations through e-commerce platforms. This Business-to-Business (B2B) system offers real-time data about hotel room availability and enables hotels to connect with a large number of potential guests. Economic growth, political stability, and aggressive tourism campaigns are key factors boosting the adoption of GDS, premises distribution systems, and cloud-based distribution systems in aviation and hospitality industries.
GDS assists travel agents/agencies in finding hotel rooms that meet their needs. It provides a single access point for thousands of travel agents to book rooms, allowing them to reach a large number of customers located all over the world. According to AltexSoft, GDS systems provided by Amadeus, Sabre, and Travelport are used by various hotel properties. Furthermore, increase in integration of GDS with hotels helps provide real-time access to the hotel's booking system. Companies in the hospitality industry are significantly investing in marketing programs to increase their customer base. Adoption of GDS can help decrease marketing expenditure. Thus, integration of hotels with GDS helps provide a cost-effective alternative to marketing.
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Various mergers and acquisitions have taken place in the global travel industry, which includes civil, aviation, and hospitality industries. Independent travel agents, online agents, and travel agencies are focused on adopting sophisticated GDS software to search for the best available travel and accommodations and rates for their clients. For instance, in October 2021, Sabre Corporation signed a partnership agreement with Emirates to deliver the latter's content with personalized offers to Sabre-connected travel buyers and agencies through Sabre's GDS. These consolidations among airlines have increased the customer base for GDS providers, leading to optimal utilization of airline seat capacity and increase in profit negotiation advantage for airline travel providers. Similarly, the hotel industry has also experienced consolidation among travel agencies, including large OTAs. Thus, various mergers in civil aviation and hospitality industries have enabled GDS providers to increase their customer base and global presence.
The GDS market in Asia Pacific is anticipated to grow at a rapid pace during the forecast period, followed by that in Europe and North America. Rise in technological developments in civil aviation and hospitality industries generates the need for GDS to drive revenue and expand the customer base. India and China are growth engines of the market in Asia Pacific. The market in Asia Pacific is projected to grow at the fastest CAGR during the forecast period.
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North America held prominent share of the global GDS market in 2021. Rise in demand for cloud-based GDS solutions is expected to drive the market in North America during the forecast period. North America and Europe are expected to retain their position throughout the forecast period. Presence of major GDS providers in the U.S. and that of SMEs and travel industries in Europe is augmenting the market in these regions.
During the initial days of the COVID-19 pandemic, demand for GDS declined significantly due to government-imposed rules and regulations on the travel and tourism industry. However, post the peak of the pandemic, GDS has managed to consistently remain one of the most efficient booking distribution platforms used by travel agents for booking flights, hotel rooms, and cars. According to Euromonitor International, the hospitality industry is highly fragmented, representing less than 30% of room revenue by the top 10 players in the global hotel chain in every region, except North America and Australia. The chain of hotels that currently offer services through GDS represents a small percentage of the total hotel inventory.
Many industries such as civil, aviation, hospitality, and car rental have leveraged benefits of GDS such as high operational productivity, increase in profits, and better customer service. This is expected to augment the global GDS market in the next few years.
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The global GDS market is highly fragmented, with vendors looking for ways to successfully tap into growth opportunities and strengthen their presence in the market. Companies operating in the market are partnering with regional travel agencies to expand their market presence. Vendors are also focusing on adopting M&A strategies, launching new solutions, and improving their services to enhance their global distribution system market share in 2022. The next few years are expected to offer scope for setting up GDS solutions in untapped markets. Amadeus IT Group SA, eZee Centrix, Pegasus GDS, Sabre Corporation, SiteMinder Distribution Limited, Sirena-Travel CJSC, infini Travel Information, Inc., TraveloPro, Travelport Worldwide Ltd., Trawex, TravelSky Technology Limited, FlightsLogic, and Kiu System Solutions are prominent players operating in the market.
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